Cash credit account entry and in balance sheet
This query is : Resolved
09 May 2022
WE HAVE TAKEN CASH CREDIT FACILITY FROM THE BANK AND I HAVE SHOWN CASH CREDIT BALANCE AS OPENING BALANCE CREDIT IN TALLY FY 2022-23 FOR MONTH OF APRIL I HAVE PASSES FEW JOURNAL ENTRIES IN TALLY i:e
FOR MAKING PAYMNET TO SUPPIER ( SUPPLIER ACCOUNT DEBIT AND CASH CREDIT ACCOUNT CREDIT )
AND FOR WITHDRAWAL CASH ACCOUNT DEBIT TO CASH CREDIT ACCOUNT
IF SUPPOSE I HAVE TAKEN CASH CREDIT LIMIT OF 1,00,000 FROM BANK AND WHEN I HAVE A PAYMNET TO OUR SUPPLIER I WILL DEBIT CREDITOR ACCOUNT BY Rs 10000 AND CREDIT CASH CREDIT ACCOUNT BY Rs 10000
IN ABOVE CASE CASH CREDIT BALANCE WILL INCREASE ( 100000 CASH CREDIT APPROVED BY BANK )
10000 ( PAID TO CREDITOR)
TOTAL SHOWING IN TALLY CASH CREDIT BALANCE AS 110000 . WHAT I UNDESTAND THAT WHEN WE USE CREDIT CASH THE AMOUNT UTILISED SHOULD DECREASE BUT HERE IT INCREASING
AND ALSO LET ME KNOW WHERE CASH CREDIT AND OD ACCOUNT TO BE SHOWN IN BALANCE SHEET UNDER WHICH HEAD
WAITING FOR REPLY FROM EXPERTS
FOR MAKING PAYMNET TO SUPPIER ( SUPPLIER ACCOUNT DEBIT AND CASH CREDIT ACCOUNT CREDIT )
AND FOR WITHDRAWAL CASH ACCOUNT DEBIT TO CASH CREDIT ACCOUNT
IF SUPPOSE I HAVE TAKEN CASH CREDIT LIMIT OF 1,00,000 FROM BANK AND WHEN I HAVE A PAYMNET TO OUR SUPPLIER I WILL DEBIT CREDITOR ACCOUNT BY Rs 10000 AND CREDIT CASH CREDIT ACCOUNT BY Rs 10000
IN ABOVE CASE CASH CREDIT BALANCE WILL INCREASE ( 100000 CASH CREDIT APPROVED BY BANK )
10000 ( PAID TO CREDITOR)
TOTAL SHOWING IN TALLY CASH CREDIT BALANCE AS 110000 . WHAT I UNDESTAND THAT WHEN WE USE CREDIT CASH THE AMOUNT UTILISED SHOULD DECREASE BUT HERE IT INCREASING
AND ALSO LET ME KNOW WHERE CASH CREDIT AND OD ACCOUNT TO BE SHOWN IN BALANCE SHEET UNDER WHICH HEAD
WAITING FOR REPLY FROM EXPERTS
09 May 2022
Pass the entry credit cash and debit cash credit when you deposit cash into cash credit account.
Show cash credit and Overdraft in the current liabilities when utilised.
Show cash credit and Overdraft in the current liabilities when utilised.
09 May 2022
Ok but what if when we make payment to creditor we will credit cash credit account and since we are showing cc as credit balance passing more journal entry to cash credit will increase credit balance pls clarify
09 May 2022
Opening balance cash credit 100000
Paid to creditors. 10000
So my tally is showing cash credit balance 110000
Paid to creditors. 10000
So my tally is showing cash credit balance 110000
09 May 2022
Yes, the entry is right.
Now you have to deposit 10,000 in cash credit account to keep it within limits.
Now you have to deposit 10,000 in cash credit account to keep it within limits.
10 May 2022
Ok but when my cash credit balance shows increase by 10000 that’s is Total 110000 credit balance in tally
Does it indicate that my balance Approved 110000
Sir can you pls help me with example
M still confused
Does it indicate that my balance Approved 110000
Sir can you pls help me with example
M still confused
10 May 2022
10,000 is cheque issued but not presented for payment before the cheque is presented make 10000 deposit in cash credit account.
It's not approved balance but it's book balance.
It's not approved balance but it's book balance.
10 May 2022
Yes, it's the same process.
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